Buyer Should Expect Some Defects In New Home, But Also Prompt

Repairs

November 02, 1985|By Robert J. Bruss.

Q-Two months ago we bought a new home that we were looking forward to enjoying. Since moving in the following problems have developed: the dishwasher leaks, the back door is warped and can`t be locked, the patio slab has cracked, the refrigerator is noisy and the icemaker doesn`t work right, the gutters don`t drain right, and the garage door sticks. Everytime I phone the builder, the receptionist takes the complaint and says someone will call to repair the problem. But nobody ever calls back. I`ve phoned at least a dozen times to speak to the salesman or the builder himself, but they are always ``out of the office.`` What can I do to get action on these defects?

A-Buyers of new houses should expect a few defects but they also should expect prompt repairs. Most reputable home builders set aside allowances for these ``call backs.`` But there is no excuse for the bad treatment you are receiving from your home builder.

If the builder has other new homes for sale in the vicinity I would go visit his sales office on a busy day, such as Saturday or Sunday. Find the salesman who sold your home to you and make your complaints known. Insist on a specific time for the repairs to be made.

However, if you don`t get satisfaction, be sure to check your purchase papers to learn the details of your warranty. Most builders provide at least a one-year warranty on their homes, and the best builders include a 10-year warranty from a third-party company, such as the well-known Home Owner`s Warranty Company (HOW). If you have such a warranty, contact the company for assistance with your builder.

But if all this fails, consult a real estate attorney to put pressure on the builder to correct the defects. If your neighbors have similar problems with their new houses, a class action lawsuit may be necessary.

Q-I own several rental houses in low income neighborhoods. Recently a real estate agent mailed me an unsolicited offer on behalf of his buyer to purchase this house. However, I do not have the house listed for sale. This is the second time I have received offers prepared by this agent. I would like to know if these unsolicited offers are illegal and would there be anything illegal about my dealing direct with the buyer?

A-It is not illegal for a real estate agent to bring you an unsolicited purchase offer on behalf of his buyer. However, it is highly unusual. But it would be illegal for the agent to advertise your property for sale or go in the house to inspect it without your permission.

When the agent delivers the purchase offer to you, since he has no listing or commission agreement with you, the agent is taking a chance you might make a direct sale to the buyer. For you to do so would be unethical but probably not illegal. Consult your attorney for details.

Q-I just passed my real estate sales license exam. Unfortunately, the broker who encouraged me to go into realty sales has just sold her office and is retiring so I no longer feel any obligation to her. That firm has only five salespeople and I`m thinking I should affiliate with a larger office which can offer me more sales training. Do you recommend that a new licensee affiliate with a large or small brokerage?

A-Large realty brokerage offices usually have more resources for training, inter-office buyer and seller referrals, secretarial assistance, and financial stability than do small firms. However, it is easy to get lost in a large firm, whereas in a small office the broker can usually give more assistance with sales problems.

I recommend a new realty licensee affiliate with a brokerage which offers a continuing training program for both old and new licensees. Usually this will be a larger firm, although some small realty offices have excellent training programs.

Q-Two years ago I was part of a group of 11 doctors who each invested $15,000 in a fancy drive-thru hot dog store located on a small lot at a busy intersection. The woman who ran the store did an excellent job, always paid the rent on time, and we thought our investment was well-secured. Then about five months ago she quit, ran off to Las Vegas to get married, and we can`t find anyone to take over this store which is too small for the major fast food companies. We listed the building for sale or lease with a commercial broker but no action so far. Any ideas?

A-Your situation shows why single-use properties are not recommended realty investments. Perhaps a creative realty agent can find another use for your building other than fast food, such as a one-hour photo shop.